Fixed Income GroupFixed Income GroupTSX / NYSE: RY

Presentation to analysts and institutional investorsToronto - June 18, 2003

Larry HoltzPresident Fixed Income GroupRBC Dain Rauscher

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OverviewOverview

Capabilities and size

Customers and strategies

Successful performance

Future growth and leverage

3

Fixed Income Group (FIG)Fixed Income Group (FIG)

Leading U.S. middle market fixed income businessRelationship-based organization focused on customer prioritiesStrategically organized to serve three targeted customer segments:

middle market institutional investors – Salesmiddle market issuers – Public Finance Bankingindividual investors – Wealth Management

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Fixed Income officesFixed Income offices

30 Locations112 Banking Professionals135 Salespeople107 Traders22 Research Analysts

126 Other502 Total

Ft. Lauderdale, FL

New York, NY

Philadelphia, PA

Boston, MA

Florham Park, NJ

Charlotte, NC

Scranton, PA

W. Paterson, NJ

Lancaster, PA

Pittsburgh, PA

Nashville, TN

Conshohocken, PA

HoustonSarasota, FL

Cleveland, OH

Chicago, IL

Memphis

Dallas, TX

Minneapolis, MN

Des Moines, IA

San Antonio, TX

Denver, CO

Albuquerque, NM

Tucson

Phoenix, AZ

Seattle, WA

Portland, OR

San Francisco, CA

Los Angeles, CA

Newport, OR

Banking

Banking, Sales, Trading

Banking, SalesBanking, Sales

TradingBanking, Trading

Banking, Sales, Trading

Sales, Trading

Banking

SalesTrading

Banking, Trading

Banking, Sales, Trading

Banking

Banking

Banking, Sales, Trading

Banking, Sales

Sales

Banking

Banking, Trading

Sales, Trading

Banking, Sales

Sales

Sales

Banking, Sales, TradingBanking, Sales, Trading

Trading Sales, Trading

Banking, Sales, Trading

Banking

As of April 30, 2003

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Fixed Income business systemFixed Income business system

Advice

Capital

OriginationUnderwriting

TradingResearch

& Strategies

DistributionIssuers

�Municipal

�Taxable

Investors

� Tier 1

� Tier 2

� Tier 3

� Tier 4

� Individual

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FIG revenue growth and diversityFIG revenue growth and diversity

47%

26% 27%

Trading ( 27%)Institutional Sales (47%)Investment Banking (26%)

US$ millions

1 2

1 Pro forma for RBC Dain Rauscher and Tucker Anthony Sutro combined2 Reflects the merger of RBC Dain Rauscher and Tucker Anthony Sutro

$138

$251

$145

$70

2001 2002 6 mos. 2003

Dain TAS

1 2

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Middle market investorsMiddle market investors

Target customersdepository institutions – banks, credit unions, S&Lstotal return firms – investment managers, insurance companiespublic funds

Strategy – target middle market customer baseinvestor segment that most values services we provide

- Advice and portfolio management

Value proposition – provide a full complement of products, value-added services and client portfolio solutions 135 salespeople, 17 U.S. offices

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Middle market investors –diversified revenue baseMiddle market investors –diversified revenue base

Broker/ Dealers

2%

Other5%

Trust6%

Product diversification Customer diversification

MBS17%

Treas &Agencies

15%Corps24%

New IssueMuni12%

Sec’y Muni29%

Other 3%

InvestmentManager

40%

PublicFund10%

Insurance17%

Depository20%

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Middle market issuersMiddle market issuers

Target customersactive middle market municipal issuerswithin targeted geographieswithin sectors of expertise

Strategy – leverage relationshipsstrengthen strong local presenceleverage our reputation of credibilitygain penetration and market share

Value proposition – local presence plus sector expertise allows us to provide efficient and effective issuing and advisory services112 banking professionals, 19 nationwide offices

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Middle market issuersMiddle market issuers

Defend and grow: ArizonaCalifornia/OregonColorado/WyomingMinnesota/North Dakota

Extend and grow:IllinoisNew YorkFlorida

Build expertise in specialty sectors: EducationHealthcareHousing

New MexicoPennsylvaniaTexas

Massachusettsthe Carolinas

TransportationAsset Securitization

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Full to Book Manager Rank Mkt. ShareNumber of

IssuesSalomon Smith Barney 41,671.5 1 14.7 400UBS PaineWebber Inc. 36,869.6 2 13.0 527J P Morgan Securities Inc. 21,686.3 3 7.6 134Lehman Brothers 21,014.6 4 7.4 227Bear, Stearns & Co. 20,827.6 5 7.3 170Morgan Stanley 16,703.7 6 5.9 174Goldman, Sachs & Co. 13,659.3 7 4.8 152Merrill Lynch & Co. 11,928.5 8 4.2 188RBC Dain Rauscher 8,277.6 9 2.9 466Banc of America Securities LLC 6,949.0 10 2.5 237A.G. Edwards & Sons, Inc. 5,365.6 11 1.9 232Morgan Keegan & Co., Inc. 5,251.8 12 1.9 296William R. Hough & Co. 4,613.7 13 1.6 119U.S. Bancorp Piper Jaffray Inc 4,519.9 14 1.6 387George K. Baum & Company, Inc. 3,855.0 15 1.4 270First Albany Corporation 3,624.1 16 1.3 138Seattle-Northwest Securities Corp. 2,555.4 17 0.9 139Stone & Youngberg 2,443.8 18 0.9 145Banc One Capital Markets Inc 2,119.3 19 0.8 121Siebert Brandford Shank & Co 1,928.0 20 0.7 13Commerce Capital Markets 1,729.2 21 0.6 93City Securities Corporation 1,679.7 22 0.6 87Newman & Associates, Inc. 1,651.3 23 0.6 138Roosevelt & Cross, Inc. 1,615.3 24 0.6 108Ziegler Capital Markets Group 1,608.2 25 0.6 59

Subtotal with Book Manager 283,844.1 - 100.0 9,275Subtotal without Book Manager 0.0 - 0.0 0Industry Total 283,844.1 - 100.0 9,275

Par Amount (US$ mil)

Nat’l sr. manager issuer rankingNat’l sr. manager issuer ranking

Source: Thomson Financial

Public Finance Full Credit to Book

Manager01/01/2002 - 12/31/2002

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Full to Book Manager Rank Mkt. ShareNumber of

IssuesUBS PaineWebber Inc. 7,682.3 1 8.9 343RBC Dain Rauscher 4,938.4 2 5.7 435Salomon Smith Barney 4,933.6 3 5.7 221U.S. Bancorp Piper Jaffray Inc 3,083.8 4 3.6 376A.G. Edwards & Sons, Inc. 3,064.9 5 3.6 208Lehman Brothers 2,987.3 6 3.5 142Banc of America Securities LLC 2,971.0 7 3.4 212Morgan Keegan & Co., Inc. 2,934.9 8 3.4 274Merrill Lynch & Co. 2,780.0 9 3.2 120George K. Baum & Company, Inc. 2,615.9 10 3.0 259Morgan Stanley 2,136.9 11 2.5 87Bear, Stearns & Co. 2,110.0 12 2.4 90Stone & Youngberg 1,857.4 13 2.2 137Goldman, Sachs & Co. 1,641.8 14 1.9 72J P Morgan Securities Inc. 1,604.7 15 1.9 71Robert W. Baird & Co. Incorporated 1,364.6 16 1.6 258First Albany Corporation 1,287.1 17 1.5 127Newman & Associates, Inc. 1,256.7 18 1.5 132William R. Hough & Co. 1,184.1 19 1.4 97Banc One Capital Markets Inc 1,103.8 20 1.3 109Seattle-Northwest Securities Corp. 1,077.5 21 1.3 132Legg Mason Wood Walker Inc. 1,026.4 22 1.2 78Roosevelt & Cross, Inc. 1,019.8 23 1.2 106Wachovia Securities Inc 974.2 24 1.1 77City Securities Corporation 973.5 25 1.1 84

Subtotal with Book Manager 86,374.0 - 100.0 8,136Subtotal without Book Manager 0.0 - 0.0 0Industry Total 86,374.0 - 100.0 8,136

Par Amount (US$ mil)

Nat’l middle market issuer rankingNat’l middle market issuer ranking

Public Finance Full Credit to Book

Manager,Par value less than

$50 million01/01/2002 - 12/31/2002

Source: Thomson Financial

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Individual investorsIndividual investors

Partner with PCG in the wealth management processProvide broad array of products and services

product selection, trading support, credit research, portfolio management strategies

Significant municipal business fits well with retail investor baseVolume of business further leverages our cost structureFixed Income share of individual investor commissions:

has grown from 15% in 1998 to 29% in the first half of 2003US$83 million during the first half of 2003

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The RBC Dain Rauscher U.S. edgeThe RBC Dain Rauscher U.S. edge

Unique positioning as a large middle market firm

provide Tier 1 products and services to middle market clients

Synergies of Private Client Group - Fixed Income partnershipSize and success of our municipal business

leverages wealth management strategy

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Economies of scaleEconomies of scale

Fixed Income revenues are counter-cyclicaldiversify firm revenues during volatile markets

Goal has been to grow FIG to a critical massaccomplished through acquisitions and organic growth

Five-year1 CAGR trends are improving profit margins:

revenues have grown 23.6%non-employee operating expenses up only 5.5%total employee and non-employee expenses up 17.4%

1 Five-year period beginning with fiscal year 1998 and ending with fiscal year 2003, calculated using6-month 2003 results annualized – not a forecast of 2003 results.

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Transforming eventsTransforming events

Deleveraging of Wall Street firms and withdrawal of liquidity in the late ’90sTucker Anthony Sutro acquisition in 2001

growth platform in East and West Coast marketscombined firm leverage grew revenues and margins during years with similar market characteristics:

+20.7%Increase

US$1,303,0002002

2512002

US$935,0002001

138 70 208

2001 2001 combined Dain + TAS = pro forma

TAS sales productivity

Net revenue (US$ millions)

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Financial comparisonFinancial comparison

1 2001 fiscal year pro forma developed by adding together separate Fixed Income Group results for RBC Dain Rauscher and Tucker Anthony Sutro

2 2002 actual fiscal year results include full-year results for Tucker Anthony Sutra business following integration 3 Includes all direct divisional operating expenses and corporate allocated expenses4 Net revenue less direct compensation and benefits expenses, direct operating expense, and allocated

corporate expense, but excluding acquisition and conversion expense, parent company allocated expense and income taxes

2.1 pp8.0 ppPre-tax profit margin4

(2.8 pp)(3.8 pp)Non-employee operating expenses3

0.7 pp(4.2 pp)Compensation & benefits expense

Change as a percent of revenue:

$145$251$208Revenues (in US$ millions)

6 mos. 2003 Actual

2002 Actual2

2001 Pro forma1

pp = percentage points

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Growth initiativesGrowth initiatives

Focused mortgage-backed securities effortAcquire additional distribution capabilities

further leverage our platform’s cost structureboost acquired sales productivity

Niche acquisitions in bankingspecialized sector practiceclose regional gap

BondDesk trading systemEmphasis on fixed income products

within Wealth Management system

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Cross-platform leverageCross-platform leverage

RBC Capital Marketsconduit financing capabilitiesCanadian originated product in US$new derivative products for issuer clients

RBC Centuracredit facilitiesissuer referrals

RBC Mortgagelower funding costsnew securitization productimproved liquidity and execution for mortgage portfoliobetter risk management tools

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Key takeawaysKey takeaways

Deleveraging of Wall Streetsubsequent liquidity withdrawalplaying field leveled in the U.S. market

Continue to grow market shareTucker Anthony Sutro and First Institutional acquisitions

Economies of scalereasonable returns in a mediocre marketexcellent returns during up market cycles